High-performance gyros to reach $1.66B in 2017, says Yole

PARIS – The market for high-performance gyroscopes will capture growth opportunities and increase at a 4.3-percent annual rate, to $1.66 billion in 2017, according to market research firm Yole Développement (Lyon, France).

The market for Inertial Measurements Units (IMUs), traditionally dominated by defense and aerospace applications, was stable in 2011 with a size of $1.75B, said Yole Développement in its latest report, Gyroscopes and IMUs for Defense, Aerospace & Industrial. The market is expected to experience more dynamic growth in the near term, notably because new programs are being initiated in Asia, Brazil and the Middle East for the defense and aerospace sectors. Many new applications are also being introduced, the market research firm said.

Honeywell, Northrop Grumman and Sagem are dominating the market, but many newcomers are emerging with low-cost MEMS-based products.

For the year 2011, Yole Développement noted that the high-performance gyroscope market amounted to $1.29 billion, growing at a 4.3 percent annual basis, and is expected to reach $1.66 billion in 2017.

Yole noted that growth opportunities will be concentrated in a few applications, geographies or technologies. Firstly, defense applications continue to represent half of the market, and this is likely to remain about the same as budget cuts in the U.S. and in Europe will be partially compensated by strong demand in Asia.

Secondly, commercial aerospace accounts for about 25 percent of the market. After a period of stability, Yole said it predicts that an increasing number of business jet, helicopter and civil aircraft orders will drive renewed inertial systems growth, starting in 2013. Thirdly, the market composed of industrial, naval and offshore applications will be the most dynamic area.

Ring Laser Gyroscopes (RLGs) are mostly used in navigation systems and tactical guidance. Although RLGs will be robust for high-performance, Yole Développement said it expects two other technologies to make a large contribution to 2011-2017 growth: Fiber Optic Gyroscopes (FOGs), which are now very popular for stabilization applications, and should quickly progress to replace other navigation technologies; and MEMS technology, which will have the largest impact on the industry.